Figure: Demand and Supply with Subsidy Reference: Ref 6-10

question 91

Multiple Choice

Figure: Demand and Supply with Subsidy Reference: Ref 6-10 (Figure: Supply and Demand with Subsidy) Refer to the figure. Suppose a subsidy allows sellers to receive their product at the price of $8 with a quantity of 400 units. What is the dollar amount of the subsidy per unit of the good?

• A) $1
• B) $6
• C) $2
• D) $100

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Definitions:

Marginal Means

The mean values of a variable in a dataset at each level of another variable, especially in the context of factor analysis or ANOVA, used for understanding group differences.

Dependent Variable

The variable being tested and measured in an experiment, its outcome depends on the influence of the independent variable.

Factorial Research Design

Research design consisting of all possible combinations of two or more independent variables.

Marginal Mean

The arithmetic mean of values for a particular variable, considering the impact of covariates in the analysis.